Monthly Archives: August 2016

Investors beware, chill winds are coming

You need JavaScript active on your browser in order to see this video. August was a soporific, a gentle susurration of stock markets ebbing and flowing without force. The month was a collective holiday from excitement after the mania of Brexit, a stark contrast to last year when a surprise devaluation of the Chinese currency was followed by generalised, if…

Danish payments processor Nets plans IPO

Scandinavia’s biggest payment processor aims to announce plans for an initial public offering on Thursday that could value it at as much as DKr35bn ($5.2bn), according to people briefed on the plans. The planned flotation of Nets Holding on the Danish stock exchange comes only two years after it was bought by the US private equity groups, Bain Capital and…

‘Massive demand’ greets Saudi bond sale

©Reuters Prince Mohammed bin Salman is spearheading a sweeping reform programme aimed at diversifying the kingdom’s economy Saudi Arabia’s first international debt sale has generated so much interest from Asian investors that the kingdom is weighing a full pipeline of bonds to follow a $15bn initial auction as early as October, according to bankers briefed on the sale. The clamour…

Oil sours US energy stocks

©Reuters A torpid month for US stocks was on track to end in characteristically quiet fashion on Wednesday as investors hung back in the face of pending economic data. The S&P 500 equities benchmark was headed for its 38th straight session without a move of 1 per cent or more, according to S&P Dow Jones Indices. It has been the…

Berkeley belies relegation by leading way

©Reuters Berkeley shrugged off its relegation from the FTSE 100 on Wednesday to lead the blue-chip gainers. Both JPMorgan Cazenove and Deutsche Bank were positive on the London-focused housebuilder ahead of a trading update due on September 6. Berkeley “is not a play on peak-to-trough London house prices” as most of its land bank was bought between 2009 and 2012,…

US declares victory in G20 austerity debate

©Bloomberg Jack Lew, the US Treasury Secretary, has claimed victory in Washington’s campaign for the world’s leading economies to embrace fiscal stimulus, saying they had come round to longstanding US arguments to put growth before austerity. Speaking ahead of President Barack Obama’s final Group of 20 summit which takes place in China later this week, Mr Lew said a “consensus”…

Banks outperform after volatile year

©EPA Europe and Japan led a rally in global bank shares in August, as investors extended a summer respite to a sector that has been dogged all year by concerns over profitability in a world of negative interest rates. The Euro Stoxx banks index, a broad measure of the continent’s major financial institutions, jumped 6.4 per cent. The Topix banks…

Zinc price too good for Nyrstar to risk

One of the world’s largest zinc producers has moved to lock in the recent rally in prices, hedging part of its metal output as it completes a restructuring plan. Brussels-listed Nyrstar, which has put its zinc mines up for sale to focus on its larger role as a metals processor, said that it was using options contracts to hedge 8,000…

Traders love big round numbers

©PA Traders love big round numbers. They provide a talking point, and just by dint of their huge fat simplicity can sometimes seem to display a gravitational pull on the market. Once reached, or breached, they can provide more fun as those stops placed around the figure get swiftly triggered, exacerbating momentum. Popular right now is the idea that the…

Coco bonds stage summer revival

©Bloomberg It started as an unpleasant year for coco bonds. The price of the riskiest bank debt plunged in February as fears over Europe’s banking industry intensified. Some even questioned the future of an asset class that offers bondholders juicy yields but leaves them on the hook if lenders run into trouble. Yet when three UK banks sold coco bonds…